City Hall Hustle: What’s Next for the Council and Austin Energy?

An Austin Energy truck makes repairs in the West Campus. The city council is debating whether an independent board should oversee the utility.

I-Hwa Cheng for KUT News

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The Hustle on all things Austin Energy

It isn’t everyday that citizens stay late into the evening to tell the Austin City Council what a good job it’s doing. But that was the case last week.

“You’ve guys have won awards – dozens and dozens and dozens of awards – for being the most innovative, green, efficient, well-managed, best customer satisfaction utility in the state of Texas,” environmentalist Tom “Smitty” Smith with Public Citizen told the council. “And you want to change this?”

The proposal would ultimately create a seven-member board, appointed by the council, to oversee the utility. Sponsors said the council would continue to set policy for Austin Energy – but that daily operations need more oversight.

“I don’t know how to keep it cheap,” said council member Bill Spelman, one of the proposal’s sponsors. “I am not an expert on the production of energy. I am not an expert on the operation of businesses – particularly in an industry as brutally competitive as the electric industry has become in Texas.”

But the council wasn’t in complete agreement. Council member Laura Morrison said a review of just what powers would the new board would have would be the deciding factor in her vote: “That will for me, shed a whole lot of light on how this would work and how I can – if I can – actually support it in the end.”

That was a little more generous than council member Kathie Tovo, who couldn’t even bring herself to call the potential board independent. “I’m not going to call it an independent governing board,” she said, calling it “some sort of midlevel board that would make some level of decisions … outside of council approval” instead.

All that said, the council unanimously approved a measure telling City Manager Marc Ott to flesh out the details. Expect the sparks to fly when he brings his recommendations back March 21.

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What’s $14 million between friends? Grounds for argument, if the Austin City Council is any indication.

On Tuesday the council wrangled with how to spend a $14 million mid-year budget surplus, the result of higher than expected sales tax and development revenues. The day’s big winner? Affordable housing initiatives, which were earmarked for $10 million.

The resolution directs the city manager to develop the ordinance that will outline the dynamics of this board by March 21. While the board will oversee Austin Energy, city council will retain final approval of electric rates, transactions of more than $100 million and any board nominees.

State Rep. Mark Strama, D-Austin, is considering a run for mayor of Austin and won’t seek another term in the Texas House, he said Wednesday.

“I genuinely have not decided whether to run for mayor — I can think of as many reasons not to do it as to do it,” he said. “Regardless, I have decided not to run for another term in the House. All good things must come to an end, and on a separate note, so must my time in the Texas House.”